Manitoba research and development tax credit

This tax credit provides structured financing through a combination of refundable and non-refundable credits to support corporations' research and development expenses in Manitoba. The modalities facilitate versatile financial planning by enabling carry-back and carry-forward of unused credits.

• The credit is equal to 15% of eligible expenditures.
• The R&D tax credit is fully refundable if the project is conducted under an eligible contract with a qualifying research institute.
• If not contracted with such an institute, 50% of the tax credit is refundable, with the remainder being non-refundable.
• Unused non-refundable credits can be carried back to the three previous tax years.
• Unused non-refundable credits can also be carried forward to the next 20 tax years.

Eligibility for the Manitoba research and development tax credit is determined based on specific criteria related to the applicant's status and their activities in the province.

• The corporation must have a permanent establishment in Manitoba.
• Eligible expenditures must be made for research and development carried out in Manitoba.
• Expenditures incurred must be either current expenditures or capital expenditures for depreciable property, excluding buildings or leasehold interests in buildings, and include first term and second term shared-use-equipment.
• The corporation may claim any repayments of government assistance related to eligible R&D expenditures.
• Unused non-refundable credits can be carried back three years or carried forward 20 years following the expenditure year.

Who is eligible?

This tax credit is specifically for corporations with a permanent establishment in Manitoba that have incurred eligible research and development expenditures within the region. These corporations can claim a credit of 15% on the eligible expenditures, which include costs related to research and development activities performed in Manitoba.

Eligible expenses

The Manitoba research and development tax credit includes various eligible expenses incurred for research and development activities.

• Current expenditures related to research and development.
• Capital expenditures for depreciable property, excluding buildings and leasehold interests in buildings.
• First term and second term shared-use equipment.
• Repayments of government assistance related to eligible expenditures.

Eligible geographic areas

Eligible companies for the Manitoba research and development tax credit must have a permanent establishment in Manitoba. This requirement ensures that the tax credit supports local economic development within the province.

• Companies with a permanent establishment in Manitoba.

Here are additional relevant details for this grant:

• The tax credit for R&D not conducted under an eligible contract is only partially refundable, with 50% being refundable and the remaining 50% being non-refundable.
• Unused non-refundable tax credits can be carried back up to 3 years or carried forward for up to 20 years.
• You have the option to renounce, in full or in part, the R&D tax credit for eligible expenditures incurred during the year.
• Eligible educational institutions involved in the program can be found listed on Manitoba Finance's website.
• Schedule 380 must be completed and filed with your tax return to claim the credit, identifying eligible expenditures within a specified time frame.